Norsk Hydro: Hydro to discontinue the Corporate Assembly

Rhea-AI Summary

Norsk Hydro ASA has reached an agreement with unions to discontinue its Corporate Assembly, pending approval at the Annual General Meeting in May. This decision follows discussions on enhancing employee democracy. If approved, employee representation on the Board of Directors will increase from three to four. Additionally, representation on Hydro Aluminum AS and Hydro Energi AS boards will be established. The Corporate Assembly currently supervises the Board of Directors, but its dissolution will shift election authority for board members to the General Meeting.

Positive

• Increased employee representation on the Board of Directors from three to four members.
• Establishment of employee representation on the boards of Hydro Aluminum AS and Hydro Energi AS.

Negative

• Dissolution of the Corporate Assembly could centralize power at the General Meeting, reducing direct employee influence.

Norsk Hydro ASA has entered into an agreement with the company’s unions to discontinue the Corporate Assembly of Norsk Hydro ASA.

Hydro has been in dialogue with the unions through the fall of 2021 regarding employee democracy in a wider context and as part of this dialogue has agreed with the unions that the Corporate Assembly shall be discontinued. The agreement will be subject to the Annual General Meeting’s approval in May. The dissolution of the Corporate Assembly will be effective as of such approval.

If the agreement is approved by the Annual General Meeting, the number of employee representatives on the Board of Directors of Norsk Hydro ASA will be increased from three to four representatives. In addition, employee representation on the board of Hydro Aluminum AS and Hydro Energi AS will be established. The process of election of employee representatives will soon be initiated. 

About the Corporate Assembly:
The Corporate Assembly is a distinctively Norwegian governing body, which according to the Norwegian Public Limited Liability Companies Act exercises supervision of the Board of Directors. The Corporate Assembly of Norsk Hydro ASA consists of eighteen members. Twelve are elected by the General Meeting, while six are elected by and among the group's employees in Norway. It falls under the authority of the Corporate Assembly to elect the Board of Directors of the company and determine their remuneration. If the Corporate Assembly is discontinued, the authority to elect the shareholder-elected board members of Norsk Hydro ASA and to determine the board remuneration will pertain to the General Meeting.

Contact details:

Investor contact:
Line Haugetraa
+47 41406376

Media contact:
Halvor Molland
+47 92979797

FAQ

What changes are being made to Norsk Hydro ASA's governance structure in 2023?

Norsk Hydro ASA plans to discontinue its Corporate Assembly, subject to approval at the Annual General Meeting in May 2023.

How will employee representation change at Norsk Hydro ASA?

If the agreement is approved, employee representation on the Board of Directors will increase from three to four members.

When will the decision regarding the Corporate Assembly take place?

The decision on discontinuing the Corporate Assembly will be made at the Annual General Meeting in May 2023.

What authority will change if the Corporate Assembly is dissolved?

The authority to elect shareholder-elected board members and determine their remuneration will move from the Corporate Assembly to the General Meeting.

What does the Corporate Assembly currently oversee at Norsk Hydro ASA?

The Corporate Assembly supervises the Board of Directors and has the authority to elect board members.